Brisbane-based Sentinel Property Group have finalised their biggest acquisition to date, securing Makerston House from financial services company Challenger for $103 million.
The sale follows a series of direct property offloading as Challenger looks to capitalise on rising prices. Last week the firm sold Brisbane’s NEXT Hotel and a CBD Retail development to Salter Brothers for $150m.
Sentinel has continued, over the past three years, to assemble a portfolio of properties in Brisbane, Darwin, Townsville, Cairns, Newcastle, which also includes the north coast NSW regional centre of Port Macquarie valued at more than $350m.
Makerston House will be included in its main unlisted real estate investment trust, marking the tenth addition to the trust.
The 14 level office building spans 14,640sq m and was purchased fully leased via JLL. One of the significant lease holders includes the Queensland Government, as well as various state government corporate entities, and Secure Parking, with fixed annual rental reviews ranging between 3.5% and 4%.
Sentinel managing director Warren Ebert said Makerston House was well positioned in the Brisbane CBD’s North Quarter precinct, at the epicentre of some of the city’s multi-billion dollar infrastructure projects including the $5.4bn Cross River Rail network and the $2.1bn Brisbane Live precinct.
“This is a fantastic acquisition for Sentinel and is our biggest purchase since the group started ten years ago,” Mr Ebert told The Australian Financial Review.
The sale of Makerston House follows another A-Grade Brisbane CBD Tower sale, which saw KYKO’s acquisition of 201 Charlotte Street for $126.7 million. Interest in Brisbane CBD investment opportunities has risen amid improving occupancy rates and rising confidence.
Following the recent national election, many have been quick to identify a return to favour for the residential sector too. Colliers International have indicated that declining supply in the apartment sector (among several key factors) is now stimulating developer interest.
With the possibility of an undersupplied market on the horizon, a renewed sense of urgency has arisen as the city prepares to welcome approximately 25,000 new residents per year.